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Bitcoin Poised For Qucik Rally As Long-Term Holders Began To Buy BTC

Today Bitcoin price saw a steady increase, which was trading just below important levels due to the dollar’s decline and rumors of a possible Federal Reserve interest rate drop. Bitcoin had increased by 0.1% in the last 24 hours to $69,049.3. It remained to be seen, though, if the token could continuously sustain values above $70,000.

Increase In Capital Inflows for Bitcoin

According to data released by CoinShares a digital asset manager, on Monday in the last seven days leading up to June 3, there were inflows into digital asset investment products for a fourth consecutive week. This increased May’s total inflows to $2 billion. 

After the industry saw prolonged outflows through April, the inflows suggested that opinion about cryptocurrencies had recovered. Yet, daily turnover and total trading volumes for cryptocurrency investment products continued to be low.

Selling Coming To Be End

Additionally, the long-term holders’ selling has been the main cause of Bitcoin’s decline since March, but blockchain data indicates that the trend has halted and investors are now buying BTC, as per the report from Bitfinex.

For the first time in a week, Bitcoin (BTC) was momentarily over $70,000 on Monday before dropping back into its usual trading range and resuming its sideways trend. 

On the other hand, Ethereum (ETH) hardly moved from $3,700 to $3,800. Following the Securities and Exchange Commission’s approval of the listing of exchange-traded funds that track Ether directly, Ether experienced a rise in capital inflows. 

Moreover, the Federal Reserve meeting and the release of important inflation statistics the following week “could be an interesting one to watch,” since they could increase volatility in either way. Along with this Australia’s Monochrome Bitcoin ETF (IBTC) is set to begin trading on the Cboe Australia exchange from today. 

Bitcoin Techincal Analysis

Swissblock, a cryptocurrency analytics company, observed that there is strong resistance to a price cap on Bitcoin between $70,000 and $73,000.  As the short-term pullbacks are being treated as buying opportunities, with the $67,000 level proving to be a reliable support.

As of now, Bitcoin’s price stands at $69,080, marking a 0.3% increase in the past 24 hours, with a market cap of $1.35 trillion.

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